Outsourcing

The Department has followed the Government's policy of cost-effective outsourcing of non-core activities to the private sector in the provision of public services. Major outsourced services include cleansing, security, horticultural maintenance and sports centre management. By the end of 2006, the Department managed 127 outsourced contracts covering both leisure and cultural facilities at a total value of $1,738 million. The main objective of outsourcing is to improve the Department's efficiency and to achieve savings.

Contractors are engaged to carry out cleaning operations to remove mosquito breeding grounds in the parks.

In drawing up the outsourcing plans, the Department has adopted a set of predetermined principles:

• the contract is commercially viable;

• the standard of service must not be lowered;

• it must be cost effective; and

• there should be no staff redundancy.

Since 2000, the Department has contracted out the management services of 13 sports centres to deliver quality services to the public in a more cost-effective manner and to make use of the expertise in the private sector in the management of these facilities. The 13 sports centres that have been contracted out are the Jockey Club Tuen Mun Butterfly Beach Sports Centre in 2000, the Quarry Bay Sports Centre, Island East Sports Centre, Chun Wah Road Sports Centre, Cheung Sha Wan Sports Centre and Chuk Yuen Sports Centre in 2001, the Choi Hung Road Sports Centre, Wo Hing Sports Centre, North Kwai Chung Tang Shiu Kin Sports Centre and Ap Lei Chau Sports Centre in 2004, and the Fa Yuen Street Sports Centre, Wong Chuk Hang Sports Centre and Tai Kok Tsui Sports Centre in 2005.

The Department has implemented new measures to tighten up the mandatory requirements for tender assessment and management of contractors of service contracts to protect the wages and employment benefits of non-skilled workers. In addition, regular meetings between the headquarters contract management team and the senior management of contractors were held to appraise their performance and exchange views on contract management issues and related policies. These meetings provided effective forums for the Department to convey the message of zero tolerance for the exploitation of non-skilled workers and to enhance mutual communication on contract management.

Meetings between LCSD's contract management team and contractors allow the exchange of views on contract management issues.